New Zealand Oil & Gas Limited (AU:ECH)
ASX:ECH
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New Zealand Oil & Gas Limited
(Sydney:ECH)
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Rating:67Neutral
Price Target:
AU$0.38
▲(11.76% Upside)
Action:Reiterated
Date:03/31/26
The score is driven primarily by constructive technical momentum (price above major moving averages and positive MACD). Financial performance is improving but remains mixed due to thin net profitability, low ROE, and uncertain cash-flow quality. Valuation is tempered by a negative P/E despite a modest dividend yield.
Positive Factors
Investment‑centric business model
NZO’s investment‑first model means earnings derive from dividends, realized gains and interest rather than capital‑intensive production. This reduces direct commodity exposure, lowers operating capex needs and supports durable, portfolio‑driven cash receipts over a multi‑month horizon.
Negative Factors
Thin net profitability / low ROE
Very low net margins and depressed ROE signal the balance sheet is not yet translating into attractive shareholder returns. Over a 2–6 month horizon this raises concerns about persistent bottom‑line weakness, constrained distributable earnings and limited ability to grow equity value absent portfolio gains.
Read all positive and negative factors
Positive Factors
Negative Factors
Investment‑centric business model
NZO’s investment‑first model means earnings derive from dividends, realized gains and interest rather than capital‑intensive production. This reduces direct commodity exposure, lowers operating capex needs and supports durable, portfolio‑driven cash receipts over a multi‑month horizon.
Read all positive factors
New Zealand Oil & Gas Limited (ECH) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$78.38M
Dividend Yield6.72%
Average Volume (3M)12.33K
Price to Earnings (P/E)27.8
Beta (1Y)-0.35
Revenue Growth30.05%
EPS Growth614.71%
CountryAU
Employees15
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)>-0.01
Shares Outstanding223,950,840
10 Day Avg. Volume30,454
30 Day Avg. Volume12,331
Financial Highlights & Ratios
PEG Ratio-2.10
Price to Book (P/B)0.59
Price to Sales (P/S)0.69
P/FCF Ratio1.65
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
New Zealand Oil & Gas Limited Business Overview & Revenue Model
Company Description
Echelon Resources Limited engages in the exploration and production of oil and gas properties in New Zealand, Australia, and Indonesia. It also develops, produces, and sells natural gas, crude oil, liquefied petroleum gas, and condensate. The comp...
How the Company Makes Money
NZO’s earnings are primarily generated through returns on its investment portfolio rather than through direct sales of physical products or fee-for-service operations. Key sources of income typically include (1) dividends and distributions receive...
New Zealand Oil & Gas Limited Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
64
Positive
Cash Flow
55
Neutral
| Breakdown | Jun 2024 | Jun 2023 | Jun 2021 |
|---|---|---|---|
Income Statement | |||
| Total Revenue | 124.19M | 92.87M | 83.81M |
| Gross Profit | 122.89M | 94.14M | 84.15M |
| EBITDA | 53.56M | 31.91M | 36.58M |
| Net Income | 3.48M | 3.93M | 17.16M |
Balance Sheet | |||
| Total Assets | 323.75M | 332.64M | 282.36M |
| Cash, Cash Equivalents and Short-Term Investments | 39.63M | 42.29M | 64.59M |
| Total Debt | 51.57M | 53.00M | 0.00 |
| Total Liabilities | 155.24M | 157.76M | 119.95M |
| Stockholders Equity | 144.78M | 155.44M | 148.65M |
Cash Flow | |||
| Free Cash Flow | 51.91M | 33.57M | 22.28M |
| Operating Cash Flow | 0.00 | 0.00 | 0.00 |
| Investing Cash Flow | -37.64M | -67.35M | -63.58M |
| Financing Cash Flow | -22.92M | 36.82M | 24.75M |
New Zealand Oil & Gas Limited Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | AU$91.25M | 14.31 | 12.05% | 13.04% | 12.55% | -25.19% | |
67 Neutral | AU$78.38M | 27.81 | 2.32% | 6.72% | 30.05% | 614.71% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
58 Neutral | AU$51.19M | 11.17 | 11.28% | ― | 29.92% | 6000.00% | |
53 Neutral | AU$223.64M | -118.53 | -0.67% | ― | ― | -149.12% | |
47 Neutral | AU$173.48M | -46.00 | -4.27% | ― | ― | -16.67% | |
42 Neutral | AU$17.60M | -1.95 | -35.17% | ― | ― | 64.71% |
* Energy Sector Average
AU:ECH
New Zealand Oil & Gas Limited
0.35
<0.01
2.04%
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0.01
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New Zealand Oil & Gas Limited Corporate Events
Echelon Resources Resets Revenue Base With New Gas Contracts and Cue Exit
Apr 29, 2026
Echelon Resources reported a 6.5% quarter-on-quarter decline in production to 380,648 barrels of oil equivalent for the March 2026 quarter, but highlighted a step change in revenue as legacy gas contracts roll off and are replaced by higher-priced...
Echelon backs Horizon takeover bid for Cue Energy after panel ruling
Apr 14, 2026
Echelon Resources Limited has accepted Horizon Oil’s off-market takeover offer for all remaining Cue Energy Resources shares it holds or controls, excluding those covered by an existing pre-bid agreement. The decision follows the Takeovers P...
Takeovers Panel Clears Path for Horizon Oil’s Bid for Cue Energy
Apr 13, 2026
Australia’s Takeovers Panel has declined to conduct proceedings on an application from Cue Energy Resources regarding Horizon Oil’s off‑market takeover bid and related arrangements with major shareholder Echelon Resources. The de...
Horizon Oil Cuts 2026 Capex as PWC Gas LOI Expires and Marketing Strategy Shifts
Apr 12, 2026
Horizon Oil Limited has confirmed that its Letter of Intent with the Northern Territory’s Power and Water Corporation for a new Mereenie gas sales agreement has lapsed without replacement terms being agreed, although the existing gas supply ...
Echelon JV Secures Long-Term NT Gas Deal to Restart Palm Valley Capacity
Apr 12, 2026
Echelon Resources Limited said the Palm Valley Joint Venture has signed a gas supply agreement with the Northern Territory of Australia that will enable drilling of two new wells and secure up to 10.5 petajoules of gas net to the Echelon group thr...
Echelon Agrees to Delay Accepting Horizon’s Takeover Bid for Cue
Apr 9, 2026
The Takeovers Panel has accepted an undertaking from Echelon Resources Limited in relation to Horizon Oil Limited’s off‑market takeover bid for all ordinary shares in Cue Energy Resources Limited that Horizon does not already own. Eche...
Echelon Wins More Time to Finalise Northern Territory Gas Supply Deals
Apr 1, 2026
Echelon Resources Limited has secured a further extension to the deadline for converting its term sheet into binding gas supply agreements with the Northern Territory’s Power and Water Corporation, pushing the cut-off from 1 April to 10 Apri...
Central Petroleum Extends Deadline for NT Gas Sales Agreements
Apr 1, 2026
Central Petroleum and its Mereenie and Palm Valley joint venture partners have agreed with the Northern Territory’s Power and Water Corporation to extend the deadline for executing binding gas sales agreements from 1 April 2026 to 10 April 2...
Echelon Resources Outlines Gas-Focused Strategy in Investor Briefing
Mar 25, 2026
Echelon Resources Limited has released an investor presentation outlining its focused gas strategy and disciplined growth approach, while emphasising that the deck is informational only and not an offer of securities. The company underscores that ...
Echelon Wins Short Extension on NT Gas Supply Deal Deadline
Mar 24, 2026
Echelon Resources Limited has confirmed that the Mereenie and Palm Valley joint venture partners have agreed with the Northern Territory’s Power and Water Corporation to extend the deadline for executing binding gas supply agreements from 24...
Horizon Oil Secures Brief Extension on Mereenie Gas Sales Deadline
Mar 24, 2026
Horizon Oil and its Mereenie Joint Venture partners have reached an agreement with the Northern Territory’s Power and Water Corporation to extend the deadline for finalising a binding gas sales agreement tied to the Mereenie gas field. The e...
Central Petroleum Wins Short Extension on Key NT Gas Sales Deadline
Mar 24, 2026
Central Petroleum and its Mereenie and Palm Valley joint venture partners have secured a short extension from the Northern Territory’s Power and Water Corporation to finalise binding gas sale agreements, moving the deadline from 24 March 202...
Echelon Resources Sets NZD Rate for Upcoming Dividend
Mar 16, 2026
Echelon Resources Limited has updated its previously announced dividend details for the six‑month period ended 31 December 2025, payable on its ordinary fully paid shares. The update clarifies the foreign exchange rate applied to New Zealand...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.